Question Fraud or not. please help really confused need some advise. here's my story

[2strong]

[Amy26]

I don't have any advice for you about this. But I have a question.... how do you cash a 54,000 dollar check? Does the bank actually sit there counting out that money? Do they put it in a suit case? I'm legitimately curious about this.

[OhioFiler]

I would first be concerned whether you can pass the means test. I don't think you need to be in a hurry to file bk or do a short sale on the house. In 6 months your six month average income is going to be a lot less than the last 6 months have been.

Stop paying your mortgages, stop paying your credit card bills and ride through the collection efforts for a few months.

As to spending the money, if an attorney suggested a retirement account go for it. Makes sense to me.

[OhioFiler]

I don't have any advice for you about this. But I have a question.... how do you cash a 54,000 dollar check? Does the bank actually sit there counting out that money? Do they put it in a suit case? I'm legitimately curious about this.

That's only 54 $1,000 bills! When my wife and I used to travel to all-inclusive resorts for vacation I'd get a couple bundles of $1 bills to use as tips for servers, maids and bartenders. It really wasn't that thick a wad!

[Amy26]

Oh you're right LOL...I didn't think about that. I remember in that movie Dodgeball Ben Stiller presented a suitcase with like 100,000 in it and it was like one little wad.... silly me!!

[2strong]

I don't have any advice for you about this. But I have a question.... how do you cash a 54,000 dollar check? Does the bank actually sit there counting out that money? Do they put it in a suit case? I'm legitimately curious about this.

they gave me the run around for a few days. they were afraid to cash it. it was weird that much looked so little. lucky for me the Bof A i went to all the tellers have the counting machine so the would put a 10,000 bundles an it would auto count. it did feel wirde hearing all that cash but put it in 6 of those envelopes that they give you. 1 held 10 grand so i had 6 envelopes. put a couple in my pocket and carried the rest out in my hand a little nerve racking walking out with that much..




"I would first be concerned whether you can pass the means test. I don't think you need to be in a hurry to file bk or do a short sale on the house. In 6 months your six month average income is going to be a lot less than the last 6 months have been.

Stop paying your mortgages, stop paying your credit card bills and ride through the collection efforts for a few months.

As to spending the money, if an attorney suggested a retirement account go for it. Makes sense to me. "


thanks for the input. i gues i should stop and try to save as much money as i can. it's just so cinfusing you have all these people telling you to short sale it easy just do it. and there the ones making money not you.

[Amy26]

I bet! I withdrew a mere 3,000 from my bank last year and I felt wierd with that in my purse.

Being that you are so much in the hole... I can't imagine why a short sale would be beneficial... you would have to pay taxes on all that difference! Ouch!

I would consult with more attorneys... unfortunately I dunno much about this issue.

[walkthaplank]

You'll want to check with an accountant, but I don't believe that settlement is taxable. That money is for damages, not income (for tax purposes).

[hereforinfo]

If you file bankruptcy and don't disclose that money, whether it's in the bank or in a box under your bed, then yes that would be considered fraud and there would be serious consequences. However, if you delay your filing there may be some exemptions you could take for some or all of the money and do it legally.

As for not wanting to give up the money that you were awarded, well technically you already got and spent that money via credit cards and HELOCs. You can't have both. You can't walk away from all that debt AND keep a wad of cash.

[LuciluS]

I received a measly $5,000 in Feb. of this year in regards to an auto accident. Yes, it is taxable unless your medical insurance paid the bills and you had out of pocket-expenses you have Not previously claimed on a Tax Return.

I asked this specific question to our BK Attorney last year. Because the $5,000 is included as Taxable Income, is one reason I settled instead of going to court. The other reason is Yes, it is included in the 6 month look back of income in a Bankruptcy.

I was also receiving some other monthly monies deemed taxable. Because of the market tanking, those monies stopped in February. So, we will be filing a Chapter 7 9/09 using Mar - Aug. 2009 income.

We stopped Using & paying our CC after meeting with our BK Attorney late last Sept. One CC I had a Balance Transfer of $3,500 in Aug. He said to pay the monthly min. amt. plus addt'l, if possible, for 3 months, which I did. Most of our CC's debts are in the hands of Collection Agencies or Junk Debt Buyers. Just forms letters received so far. If we don't know who is calling, at the advice of our Attorney, we don't answer the telephone.

I would suggest you make a 2009 tax payment on the monies you received as part of your 'spend down' on the $56,000. Keep in mind while spending this money, you buy an Asset you will have to show a Value of that Asset at time of BK.

If your 401k is with your company, you may not be able to place the extra monies in your 401k. Might be time for an IRA for your wife and/or you, or both.

You really need to speak with a Tax Attorney first and then a Bankruptcy Attorney. It's a dang shame, someone who gets hurt has to pay taxes on the settlement. Especially as that car accident deemed me 100% disabled.

One poster stated, don't disclose it. Don't do it. Trustees have employees who spend their days researching names and Social Security #s as Trustees don't make much $$ on a Chapter 7 BK. This settlement WILL be found if not disclosed.

[justbroke]

That's only 54 $1,000 bills! When my wife and I used to travel to all-inclusive resorts for vacation I'd get a couple bundles of $1 bills to use as tips for servers, maids and bartenders. It really wasn't that thick a wad!

The wad of $1's is perfect for cruises and resort travel. Perfect for quick tips. We got 200 $1 bills from the bank for a cruise and it was the BEST think we ever took with us!

[PoorGrammyinBK7]

I am no lawyer, but I would think you could wait until it has been more than 6 months from receiving the money before you file, (if that is possible for you), meanwhile spending some of it on necessities, repairs, dental and medical exams, etc. You might be able to exempt some of it with IRA's or a vehicle - but it totally depends on your state's exemptions - you did not say which state you are in. You definitely need good legal advice tho.

[HHM]

You have to disclose the settlement and the trustee will ask you what you did with the money.

There really is no way around this except to simply spend over time.

[2strong]

thanks guys. i will find out when i talk to the new atty later. but looks like i will be waiting as long as i could before i file. i am due for a new car though. what happens if i lend some money to the in -laws. they asked to borrow 10,grand for a down paymen for a house. will the trustee go after them..

[LuciluS]

thanks guys. i will find out when i talk to the new atty later. but looks like i will be waiting as long as i could before i file. i am due for a new car though. what happens if i lend some money to the in -laws. they asked to borrow 10,grand for a down paymen for a house. will the trustee go after them..

Do NOT involve other family members in your Bankruptcy. My thinking was just like yours as family members are the easiest to give/receive Monies.

Google 'Insider Payments' in a Bankruptcy. You will understand why I said NOT LOL!

Make a list of everything to ask Attorney. Buying a new car would be an excellent question to ask. Once you buy a new car, it becomes an Asset & Fair Market Value comes into picture...then will you have enough $$ to exempt the car??

You didn't state your age, but in these times I would be concerned with Social Security as retirement and would sock that money in an IRA, 401K or an Annuity.

Luci